In an era of technological progression and innovation, corporate demand for efficient, reliable trade solutions is increasing; a trend reflected in the fact that no less than 90 per cent of international trade flows are now conducted on open account. But new relationships in unfamiliar corridors are best approached with caution. Therefore, the answer could lie with bank payment obligation (BPO). In TMI magazine, Frank-Oliver Wolf, Global Head Cash Management and International Business, Commerzbank, explains that not only does BPO offer a level of security that cannot be provided when trading on open account (without the documentation demands of letters of credit), it also offers the opportunity to attain financing and manage risk throughout the value chain.
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